One other long-standing Mexican restaurant chain has closed practically all of its places, bringing to a halt years of household dinners, weekly completely happy hours, and a loyal buyer base. Attributable to an surprising occasion, a extra extreme disaster has now affected the enterprise: the sudden lack of many staff.
Mexican eating places throughout the U.S. have been fighting rising labor and meals prices fueled by inflation, greater rates of interest on their debt obligations, and extra cautious shopper spending. This beloved Arizona chain was no exception.
Based in 2008 by two brothers as a single restaurant in Tucson, the Mexican restaurant chain is understood for its genuine Sonoran- and Tampico-style Mexican delicacies, with a concentrate on seafood dishes. It has additionally change into a well-liked hangout spot on account of its wide selection of Michelada drinks and enjoyable cocktails.
Nevertheless, after 17 years of constructing a powerful group throughout Arizona and Mexico, its future is now unsure, not solely due to the financial challenges dealing with the broader trade, but in addition on account of much more critical authorized points.
Taco Giro has confirmed that seven of its eating places will stay closed till additional discover. The sudden closures observe a number of ICE raids throughout varied places, wherein 46 kitchen staff, making up 10% of its workers, have been arrested on December 5, as reported by KGUN9.
After the raids occurred, Taco Giro closed all 9 of its Arizona eating places whereas conserving its Mexico location open, all of that are nonetheless listed on its web site. The chain additionally took to its social media platforms, posting updates in each English and Spanish to inform prospects of the shutdowns.
“Our restaurant will likely be briefly closed whereas we take a brief pause to make a number of vital changes so we are able to proceed providing the nice and cozy service and distinctive flavors you’re keen on,” wrote Taco Giro in a social media publish. “We’ll be able to welcome you again very quickly with the identical love, ardour, and flavors that at all times make you are feeling at dwelling.”
Since then, Taco Giro has slowly reopened its places, with three at the moment working. The chain has additionally revealed that it could shut two further underperforming eating places, which have been already a part of its plans earlier than the raids.
Under are all the present statuses of Taco Giro location, in response to Google Maps as of December 10.
8320 N. Thornydale Rd., Tucson: Completely closed
2097 E. Fry Blvd, Sierra Vista: Open
1402 S. Craycroft Rd., Tucson: Listed as open however not confirmed
13160 E. Colossal Cave Rd. #100, Vail: Completely closed
77 E. Paseo De Golf, Inexperienced Valley: Briefly closed
139 W. Cottonwood Ln., Casa Grande: Open
610 N. Grande Ave., Tucson: Briefly closed
2750 W. Valencia Rd., Tucson: Open
1520 Apache Path, Apache Junction: Briefly closed
Blvd. El Greco 70, Plaza Cumbres, 84066 Heroica Nogales, Sonora, Mexico: Open
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In accordance with ICE, the raids have been a part of a multiyear investigation into labor exploitation, tax violations, and immigration violations. Sixteen warrants have been executed throughout 9 eating places and 7 associated stash homes in Tucson, carried out with the help of native businesses in Cochise County and Sierra Vista.
“This multiyear investigation that focused TCOs alleged to be concerned in human smuggling, human trafficking derived from peonage resulted within the shutdown of the eating places,” stated Particular Agent in Cost Ray Rede.
“This company won’t stand for it and people in search of to proceed such practices are on discover — there will likely be extra enforcement operations in Arizona.”
Cesar Rodriguez, Taco Giro’s director of operations, informed the Tucson Sentinel that staff have been required to supply a replica of their identification and full all state and federal tax varieties, together with the I-9 employment verification doc, on the time of hiring.
Rodriguez additionally disputed ICE’s allegations and added that he doesn’t know the whereabouts of the arrested staff.
“The accusation is that they have been paying the staff that have been undocumented money below the desk,” stated Rodriguez to Tucson Sentinel. “There have been quite a lot of false allegations that we have been drug smuggling and baby trafficking. It was simply ridiculous.”
Whereas Taco Giro’s closures are tied to authorized troubles, the restaurant trade continues to be a difficult enterprise.
The U.S. Bureau of Labor Statistics stories that about 17% of latest eating places shut inside their first 12 months. Lengthy-term survival is much more difficult, with roughly half of eating places closing inside 5 years and solely 34.6% surviving previous 10, in response to Oysterlink.
Moreover, meals service site visitors dropped by 1% within the quarter ending June 2025, in response to Circana.
“Small companies could discover it tough to function throughout difficult financial circumstances. Exit charges sometimes lower with agency age and money liquidity, which may also help companies stand up to downturns. Traditionally, the median life expectancy for small companies has hovered round 5 years,” in response to JPMorganChase analysts.
Extra Restaurant Closures:
Nevertheless, there’s hope for Taco Giro to make a full comeback.
Mexican eating places, particularly, are surging in reputation within the U.S. IBISWorld forecasts that the trade’s income will attain $96.4 billion by 2025, with an annual progress price of 4.7% over the previous 5 years.
“Mexican eating places are beloved for his or her vibrant flavors, affordability, and cultural authenticity. Many eating places within the nation — from New York to Arizona — capitalize on the demand for customizable, flavorful dishes,” stated Restroworks Head of Advertising and marketing & Company Communications Nikunj Kewalramani.
“The presence of a rising Hispanic and Mexican American inhabitants has additionally fueled the demand for extra genuine and dearer Mexican eating places, increasing the attraction past quick informal codecs.”
Associated: 65-year-old fast-food chain sues main operator after closures
This story was initially revealed by TheStreet on Dec 10, 2025, the place it first appeared within the Eating places part. Add TheStreet as a Most popular Supply by clicking right here.